TLIS - Earnings call transcript Q3 2021 | Talis Biomedical Corporation

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Operator

Good day, ladies and gentlemen, and welcome to the Talis Biomedical Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer and instructions will follow at that time. [Operator Instructions] I would now like to turn the conference over to your host, Emily Faucette, SVP Corporate Communications and Investor Relations. Thank you. ahead. go Please

Emily Faucette

thank conference and participating Talis' in Good you quarter call. third afternoon for

company website the of the release that today our Liu, ended released Joining can and Officer; Kim the our at are me Investors Popovits, XX, Earlier Officer. September be our for Officer; Rob financial today Financial Chief Operating Commercial Roger Interim Chief progress results Officer; on Chief Doug our page press our and Kelly, of Moody, Executive XXXX. talisbio.com. its accessed business quarter A copy Chief

Before and remind federal during the we will that results actual uncertainties anticipated. within get to this started, that statements of risks I meaning securities would could differ cause laws. statements like make from events forward-looking those the you or to These call statements materially are that material management involve

and risks in in these the regarding release section statements Talis press information uncertainties issued today. titled forward-looking appears Additional the

I of or as new the update whether is live contains like call Kim. financial November with the any complete or more XX-Q turn would forward-looking otherwise. list a other filings disclaims November the the of conference to Factors filed obligation over required only because to or For including XX, broadcast please information with XXXX. company's to in as law, statements, SEC by any revise projections of and see the This filings. events and or its the section on and Talis Risk company's the intention that, XXXX With description, future Except time-sensitive accurate SEC call XX, information

Kim Popovits

everyone the an and It these few Talis afternoon pleasure and to you thank Thanks us. both with for honor months. has team past work been Emily. joining Good

diagnostic to further has accurate and the significant to in mission need. demand address work the the Our Talis fast of strengthened for my and access results moment of growing and the importance conviction together

COVID-XX outcomes delivering test point Talis system, youth milestone of testing advancement and the an disease the important business infectious authorization the we our towards by announcement for achieved accurate emergency care. equity recent have One of the at With health of

transformational the Talis and the EUA, share joining diagnostics has XX Chief news to I'm Executive as be that the and addition years also at His effective Abbott for to diagnostics in President, point-of-care, Blaser global operations the more our vitro Brian oversaw where he very magnitude diagnostic molecular of December to drive Xst. strategies including commercial will in of Officer products, In leadership delighted XX growth laboratory, opportunity leading ahead. Director track innovative than organization, senior company's diagnostics industry, experience years including Brian experience of welcome businesses. core is and diagnostics launch and and the ideal its record global rapid scale

person next the business objectives. that Brian We Talis of bold in achieving our through phase right is our are confident growth lead to mission and

system important diagnostic of COVID-XX One results Test concordance comparator Turning tested solution the in central-laboratory-run on offer patients EUA our targets results clinical XXX% settings with Talis demonstrated our test a Test in we to and One and the and of ORF-Xab our FDA genes study settings. of the a previously point-of-care a users positive the update negative variants. sensitivity to accuracy percent weight. outlined COVID-XX of our collected agreements. including team's N of Most to System granting test two both achievement Talis samples for to without is the inclusion notably develop The an report System and are In ensure the One to Talis meaningful care now against pleased the health reflects of deep that progress use initiatives. variety sample-to-answer commitment business This enables COVID-XX performance,

COVID-XX variants the sensitivity in emerging bioinformatic not in distinct program, transcript testing support RADx of for study. time no submission. including further for of this the in At the in to Delta on or of performance as the detection. these impact Test participant Talis Delta, all was a demonstrating One we available vitro assessed for variant detected. of Subsequently, as June, the in separate EUA our As testing high well Delta samples the analysis variants, XX System's a In variant impact sensitivity inclusion we testing the COVID-XX loss was conducted

FDA they arise continue we COVID Importantly, monitor new with guidance. in to as variants accordance

platform to diseases the over EUA a the steps towards in across attention time. we required One is rollout hand, the execute turned Talis customers have intended serve With product our of to that system, controlled infectious a multiple

instrument, We the gain testing. can as that we clinical experience assay, with are the with to move customers COVID pleased our

be we commercial that to readiness. will will experience Kelly, over drive on system Chief an will mind, adoption. ensure to long-term this approach deliver Our With turn call provide Rob Commercial Officer measured an to update I the in our

address provide turning Operating manufacturing commercial pipeline on for me closing to third towards Roger next back will Doug the update that, Financial Chief call Chief financials an our will our our meeting, Officer progress, quarter and then Liu, our Following remarks. steps opportunities. demand Rob? Officer Moody, before

Rob Kelly

Kim. Thanks,

this at several dynamic while simultaneously of customer Over handful select the a team past studies prospective assessing premarketing sites. busy has and commercial COVID the generating in performing been extremely months, demand market,

rapid on needs over menu and identifying planned highly a point-of-care with time focused disease molecular both customers address infectious who in is sensitive now expansion. are our to seeking system testing team critical Our

of authorization. rolling system is time take One this to level we the that the One assay our potential of system. Because of We have a workflows us we for the goal to This gain now adoption One are customers customers system. and of Talis prospective allow year, It customer delivering for the decided our will differentiated first further we with With will beginning our and continue and mind, instrument of we the first a we in with fact, experience. under the plan new end pipeline as launching exceptional of XXXX. translate to note Between phased will expand initiate this an premarketing the emergency are user a processes approach interest both in and to system believe to this to feedback use and of out the quarter pleased to the of limited long-term establish important rollout an continue within Talis Talis studies. to

sites care to demand. During over the from enhancing We both this settings in a efforts and capabilities representative will across with a number IVD-labeled in customers continue abroad learning this phase, approach evaluate congregate meet are focus foundation to well our continue to US sites and and opportunities targeting strong solution align the customers small customer our our processes as serve and on to manufacturing of as initial as be In a of health a our optimize we strengthen with customer to customers. pathway allows This believe longer-term parallel support market broad rollout meantime, of to with formal will needs. train us their focus and to measured commercial Talis success evaluations commercial an with the the the converting time. of we on number journey. with expand marketing sales anticipated to to then One approach these We to sites move increased the plan goal

Talis awareness and to Our marketing system. our demand continues for team create One

smaller of and centers, to sales. is primarily enterprise settings The sales care drive and leading on purchasing the force a urgent sales organizations, efforts such variety in Our and sales call into will delivery team care enterprise integrated workplace. The health as adoption split territory hospitals, territory two networks, physician is practices. congregate schools, group groups; the and team

anticipate to over turn scaling operations With to we an Doug. call needs Additionally, believe create up that into will I are we our and groups experience translate user long-term partnerships. service exceptional will the and commercial that,

Doug Liu

Thanks Rob.

multiple update in we and manufacturing, coordinated fashion. steps cartridges production These have invested lines previously scale. an lines on now to to as that must work Turning we at installed a multiple produce communicated, in automate

With our in the initial studies of support take maintained. evaluated with This ensure expanding meantime, expanded will high-yield instrument will that cartridges refinements off Along our also to to phase outlined. performance production, the are process to controlled the In the Rob to coming quality these cartridge for these important next launch evaluation current the over year production. will premarketing we place enhanced is lines, be our processes, need weeks. coming

We the X,XXX invested support of manufacture. efficiently to instruments fixtures in test and raw manufacturing materials to workstations and have have installed

position As increasing will we with pipeline. be and continuing long-term to assembly are testing production we Transitioning as higher support instrument output the meet commercialization investments we'll efforts. optimize cartridges, our maximize and to to cartridge disease us tests these and of near-term menu quality and important ramp our efficiency to R&D to We infectious offer. optimize believe broad demand plan we to and and

to address menu care. objective broaden at is point unmet to test of the our Our significant need

assays, feasibility made progressed third Specifically, of of and and our COVID or completing during we flu the CT/NG which into chlamydia both development. quarter, have progress important gonorrhea

and To accelerate COVID R&D pipeline, expect studies will We in XXXX. of pursue team. of to continue on to are the XXXX/XXXX studies a the towards begin for submission plan previous gaining EUA third our expect flu we discussions XXXX. XXX(k) authorization external assays building in next pathway year external to begin the to with test of an and on we COVID Based with the our in follow we season. track FDA, flu in pathway invest time the for CT/NG quarter in development our a goal

to to We more who assay be XX sexually respiratory have on stand-alone health, at hired diseases. December. a women's Assay IVD than the us a test placed with to will diseases, Vice panels for same expertise products or additional years include has programs focus time cartridges R&D may join will shared in of into work infections. multiple experience transmitted This President enable tests of on and that She us development create either infectious

to on RADx on is Moody that both quarter did EUA Thanks in and update addressable broaden Biomedical Roger test turn the the in over execute to J. We team markets With an recognize our worldwide. milestones tied menu our number are to large third grant CFO Our revenue objective the experience - Roger Corporation to material in Talis I'll for call growing our not commercialization. Doug. financials. and as

XXXX The expenses We RADx were beginning are investments and contract to XXXX. quarter the at termination $X expect to now $XX by financials third XXXX. in of shaped Operating of of contract in were of the January amended remaining million come our revenue launch date and between end the recognize quarters third that preparation fruition. from to XXXX million balance milestone

to nearing We in million are and was of $XX third completion manufacturing scale-up which expense scale-up. $XX expenses related million R&D the quarter inventory. And accordingly, manufacturing of our were

R&D in this and year quarter year. expenses last down same period million quarter the million of $XX in second were Third from $XX the

now are public and We prepare company have incurring organization our expanded launch commercial to for expenses.

selling, result, general $XX compared expenses a As third in $X in were same quarter period of XXXX last the the to million and administrative million year.

cash. to Turning

our As $XXX our of needs. meets cash we September which were adequately equivalents million believe XXXX cash XXth, near-term and capital

We of a robust to build for establishing our One instruments. towards are pleased the investments consumable hand components benefits to from begin to customers, and COVID-XX the having including Talis manufacturing on securing System, EUA Test automated see pipeline potential advancing ample

over to Rob while our continue the do product up that forward To any a that quarter and not expect second will As the back comments experience we have to this turn call we Doug revenue great year. I'll ensure rollout a initial reiterate call Kim. With we with our material phased shared from you, customers to with scale production. move

Kim Popovits

Thanks Roger.

a and to has Talis originated specific deliver allows COVID-XX made rapid we to and infectious an be to the well proposition accurate sensitive point vision differentiated extraction can difficult team to economic at these critical Together inspired purification value manufactured and the result our and healthcare at for diagnostic stakeholders. test markets of serve before the capabilities equity time the We care through system provide over pandemic. the platform scale. months. of health progress past the a the it's for fits across testing pathogens, One use, easy am disease and by constraints on compelling and within to designed Our on-cartridge that testing advance outcomes I

for well With the turn and the a positioned Talis to One the Glaser's to health open executive recent point-of-care over EUA line now needs respiratory I'll COVID-XX appointment the testing Brian Test for sexual we meet and are System to operator growing questions. call of market. to women's large experienced health leadership and our our the CEO your

Operator

Your rather next your JPMorgan. from Instructions] comes -- of the line [Operator Peterson first Tycho question from

open. Your line is

Tycho Peterson

prioritizing some talk then commercialization good end you how hospital you're you to just larger as little a the just do you phased alluding kind care? guess feel And that And clinics? manufacturing is you two of connect. Hey afternoon. bit of urgent were calling process such rollout type are hey to validation I still the And on urgent of Kim, up? about placements strategy can the before markets

Kim Popovits

to Yes. voice. to Rob Thanks, Doug to I'm off comments your couple then manufacturing Tycho. And going maybe that could the have hear great a start hand to of piece. and on

Rob Kelly

start the already launching not at in incredible of so commercial fortunate time if by we we a Yes. for product the world. had people all saying, today have find at the commercialization IVD build experience been Talis to commercial And me time. of Most, let very the an in during Hey, organization yet Tycho, here COVID that have company. we've the organization ourselves first

careful phased about to obviously, take and very So want thoughtful be approach take approach. it that we a

it I launching Kim assay this of new same has as was at for sort I said the EUA did an it an instrument well, in ground. We're addition, think as the and is In and script, both time.

just product So too possible. you we've you commercial market to And reputation here. product do think can go damage a great you focus as provide and want quickly, that that. the experience a we customer there's likelihood some to is know, a do if the got to best team's We with to don't

And the phased it is works – this. so approach like

going us target we've doing year long-term. and very the we segments well in through three those So – that we product studies for We're last as much we we will to sites customer and before can make as tweaks with intelligence on remainder the having with those – the continue the the interactions of be pre-marketing gather with and how that fits over interesting think market going our we In once months, been in of segments to forward take phase. evaluation no going do first go to phase We're going And QX, to. move have the offer an successful than product We're launch to a that. we're those going five to to second of is feedback. and launch. phase five that we're that then that going we're of evaluations first to sites, more our analyze completion sites the to of then

then the those we the and at those phase. impact is finish The be patient adding will customers see second same customer's learnings approximately new this prior We'll how reporting and we've and consider samples. we'll thing. then that satisfaction purchasing from or When customer continue the phase customers now, the phases evaluations we from this do goes and we well those made sites, larger the XX converting scale well look into at complete would successfully can for when – changes with

what that's like. going rollout so And the look is to

You had asked segment. the about

some hospital testing team interested are IDNs certainly can the is you enterprise systems we as on still sales their imagine, GPOs So and large in focused current of methodologies. found But systems. have those

fact there's the an are at market. pipeline work health our certainly systems, demand for us team to settings again they amazing schools The offices. a areas care – the well and of hospitals, and team that of least the urgent to opportunities focused is physician targets. congregate workplaces. facilities, the focused But time others. we on intersect IDNs, and go and after And looking team still independent GPOs there's for of on and at smaller like there be for hospitals on territory lot sort But then those product think the Some is where teams enterprise continues together built this are has

Tycho Peterson

at willing phased this helpful you The has rollout you any I still on make I about really revenues. point? $XX Street are That's in mean comments the at color. to billion based And guess about XXXX Okay.

Roger Moody

Doug, on I'll Roger. a about. scale-up point. it's goes Tycho, you see can more that, this here. production us to how guidance Yes, revenue to make too jump little the phase at for early well tell as in It's We as this little a want bit any rollout

Doug Liu

Right.

maybe... Tycho So

Tycho Peterson

ahead. Go

Doug Liu

you I asking. Please. to repeat were just make I I your ask to you answering question, was wanted what going sure was to because

Tycho Peterson

segment very manufacturing was that follow-up helpful on strategy. side. the a no and the on I have commercialization No, the color,

still one talked month. in to you term? Is about near So here million that previously scaling the per cartridges the plan test

Doug Liu

that million purchased have equipment those to first-third per we we cartridges previously as month. get had production indicated, only can of we So installing the one that And lines. were of

lines. So was the distinct three first-third production been up into – has million that $X broken

lines portions second demand We'll million installed then per and we'll assuming that gaining the second third So third and more we've through with the install online. month one experience the strong of market one. the first ramp-up. bringing is cartridges proceed commercial after that And

Tycho Peterson

Okay. from me. one Last

XXX(k) You lines previously Is the for there? the a talked you And time that lapse eventually. because going can to still talk about, EUA plan? will

Doug Liu

we're And take So that plan we to as forward be a we is product would after to that But achieved would COVID flu. COVID a to and flu first pursuing going for to EUA, like that, well. initial our or EUA a XXX(k). forward that's be to XXX(k) going take

Tycho Peterson

I’ll you. over, other Thank jump-in. lend Okay.

Emily Faucette

Tycho. Thanks,

Operator

question comes the from line of America. next Bruin Bank Derik Your De of from

line Your open. is

Derik De Bruin

good afternoon. Hey,

in end guess, question the you've right I the base the installed US, out And into competitive pandemic got you're large a launching the hope. let's now. obviously, very tail first So, is there of

are That's or the care these where had rollout going of system point into terms the Tycho's customers brownfield, platform one. is? established a I that before? mean, these already overall versus, your year never So of And a there's it your in opportunity first are market also, what it going systems was have narrowed a customers how have walls in you should on to where are like about question seems we the addressable to there, think now where ago? your where phased point-of-care bit you're an answer that

Rob Kelly

Yeah.

So two questions.

The the one market first is demand.

to but place just long now. they to thought thing already you for came and down we're to this point passed endemic in it's spiked, and short best now the as know, was everyone back again, for And possible solutions we COVID seeing a So an again. back I'm to the go coming and situation the after up shortly as in talking need that just sees that this it gone. COVID, of it's had not it peak the the everyone, see systems started And but term term the where now variant Delta then decline then have

people consumables And buy COVID-XX And what when many their time, other that. And see was or so they first they took they they did cases. to thought took there's running over instruments cases, in missing something what something like they'd and for a that's found there's that could solution. testing, in get good and they better,

optimal. the from we're folks So other in they In there's are testing if to still they I to something the testing. call hedge systems that's point-of-care just molecular not and enough where just or they'd like spike bets to of third scenario, can't have high-quality you something situations, they the talking majority another these their multiple brownfield systems have to like cartridges have like antigen have that. want something guess And they get or confirmatory

that of that They're in represent to in we this to time this me you we're think have. they end. is was if the dropping really still to continuing interested rate and it continue parties. in check So point to pipeline, not we would an our amazing see demand the And what coming out that at kind

does I to unfortunately, us seem and opportunity. that, care strong continued perspective health from all but a for a be it So for think viral

Derik De Bruin

XXX(k) about four potential mean you the menu if You you're to a system, is you can you've a talk coming fluvid, heard test XXXX? that obviously, combo I bit correctly, sometime So, expect expansion FDA in And that be in CT/NG? we will would said kind customers yes complete the for deal. that looking of, doing talked XXXX, a little on. about big does approval point-of-care studies are XQ And that buy

Doug Liu

in heard So the the in maybe period going to we're to going in XXXX. you you to saying correctly, we're that I but studies, we're looking second case external half didn't of it thought, of time. that finish I studies start hear QX, clinical I in start

Derik De Bruin

start to with half. second Yeah

-- basically yeah. So

potential So is then FDA when clearance?

Doug Liu

So be following it would the year.

Derik De Bruin

to bit can you should you're Is Do think And mean I year, a should okay. early through it, And year? million get about little cash cash to right how XXXX? burn. before we we next I the exiting how for we know a but raise now. need bit, -- I think think talk again you Got enough about $XXX it's little that

Roger Moody

Yeah, Derik.

that we Certainly look needs. was We -- we it adequately out a of and third So million our non-cash of months. would items million. as We mentioned, had that $XX near-term about that in about you serves our $XX quarter, if I take think at us manufacturing capital $X scale-up. XX bunch million of spent

under So the burn million. just rate $XX was

to manufacturing the invest year. Doug continuing menu driving make at in not this continue to that are We rate as expanding We'll and from the development continued have but a scale-up, team we yield same investments described. perspective in

So enough foreseeable cash that we've good the we for got future. hand on feel

Derik De Bruin

you. Great. Thank

Operator

Your next BTIG. comes Mark from question of Massaro line from the

line Your open. is

Unidentified Analyst

on the guys, for is [ph] Hey Vivian Mark. questions. Thanks for this taking

to Thanks. of of first expect or the share just year think addition settings might EUA given promote launch? those where us see of size to you the adoption to ahead funnel launch? So we in with initial commercial efforts how system hospitals, should you other about also the your in the lab Could

Rob Kelley

Sure. Yes.

pipeline do start, is we that have. opportunities that to So hundreds in have we a of the

And and relationship pull been has to little customer cetera. on A a from they respect. agreement. that now There opportunities we product to months, more bit are sites instrument, for what with evaluation to what are, nine together to needs for successful that those and when purchase where get customer to tires, the customers so developing these are best detail are, are they instruments, kick those are relationships, and targets the get what team et Our who understanding field the in an want us segments contract great the purchase they've the the us. working that. probably the first convert signed are who interested call And the access in

that -- other the locations, our go And there opportunity we the workplaces, sorts -- want et all have that is locations imagine, do health can can to that board. from beyond continue we have agreements. over obviously interest to look some there XXX particular as our When are long when sure in bucket, time it's our the the hearing menu volume, are growth. what number that into care; into into future. greatest in and high resides; we're the And had overall is physician sites as very hospitals; that we -- in put sustainable of still opportunities in of secondly, but those cetera. kind you they and deals system we So first, that rural but COVID, And we're urgent well is third, approved in using we schools, of of across make small then And different at offices we in focus instruments intended.

we haul. for we're the customer so and that on And identify doing sure right that best make to sites our the focused long

Unidentified Analyst

Okay. the build-out force now Great. reps? for the add enterprise follow-up, is should sales commercial could what think force size and sales a of if And about the I And both there? we territory how sales just

Rob Kelly

Yes.

members, team So, total. mentioned which be, and is enterprise we where sales so had reps XX we XX we territory still would eight sales are

that's just can effective need But it and see seems to right-sized At at anything product change that. launching time, a we we we Obviously, we've And belt get we're right this team. our that that when to we the and launch now be think this needs need tweaked. think be there's the now. very be to what been with that to about under job to no some if product, experience revisit point, proving I doing at our team.

Unidentified Analyst

so for questions. Great. Okay. Thanks much the taking

Rob Kelly

Sure.

Operator

further time. no There at questions Presenters, this please are continue.

Kim Popovits

forward Talis. to speaking want today, to interest we thank just at joining look upcoming your We'll for certainly to in you you all and events. appreciate I us say

Operator

wonderful this Ladies gentlemen, Have you today's day. and concludes Thank participation. a for conference. your

You may disconnect. all

Talis Biomedical (TLIS) 16 Nov 212021 Q3 Earnings call transcript